The difference between subsidiaries and subordinate companies

Legal analysis: Subordinate companies include subsidiaries, branches and franchisees. Its subsidiaries can be two organizations with parallel brands and different businesses, with equal status and no subordinate relationship, but they belong to the same group.

Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.